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Basic Economic Summary

Cambodia is known to be one of the fastest-growing economies in Asia with a growth that averages about 7.6% over the last decade. While Agriculture is the most dominant economic sector marking a steady revenue to the Cambodian GDP, the economy shows strong growth in sectors that include textiles, construction, tourism, and garments. This has led to an increase in foreign investment, international trade, and an ideal country for business expansion.

Basic Information

  • Local Languages: Khmer/Cambodian (Official), English
  • Capital: Phnom Penh
  • Major Economic Hubs: Phnom Penh, Siem Reap, Sihanoukville
  • Currency:  Cambodian Riel (KHR)
  • Population: 17,037,943 (November 19, 2021)
  • Time Zone: UTC + 7
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): $1,512.7
  • Exchange Rate (KHR/USD): 0.00025

Local Universities

Renowned Local Universities:

University Ranking
Institute of Technology of Cambodia / Institut de Technologie du Cambodge Ranking in Cambodia: 1
World Ranking:
Royal University of Phnom Penh Ranking in Cambodia: 2
World Ranking: 4867
Royal University of Agriculture Cambodia Ranking in Cambodia: 3
World Ranking: 6402
University of Health Science Ranking in Cambodia: 4
World Ranking: 8094
University of Cambodia Ranking in Cambodia: 5
World Ranking: 12908

You can find more information about the top renowned universities in Cambodia here.

Salary Data

Top IT jobs in demand in Cambodia include Network Analysts and Software Programmers.

More information on average salaries in Cambodia can be found on Teleport and SalaryExplorer.

Talent Sourcing Tips

English Proficiency: Low Proficiency

Number of LinkedIn Users (2021): 419,200

Top Local Job Portals: Khmer Online Jobs, Pelprek.com, BongThom.com

Top Recruitment Agencies:Top Recruitment Cambodia, Khmer Best Job, CampUP Job


Employer Payroll Tax

Type of TaxContribution (%)
Health Insurance2.60%
National Social Security Fund0.8%

The employer payroll tax can be found here.

Employee Payroll Tax

Type of TaxContribution (%)
Health insurance1.30%

Employee Monthly Income Tax

Income Group (KHR)Contribution (%)
0 – 1,300,0000%
1,300,001 – 2,000,0005%
2,000,001 – 8,500,00010%
8,500,001 – 12,500,00015%
> 12,500,00020%

Cambodia follows a progressive income tax model. Non-residents are taxed at a flat rate of 20%, which constitutes a final tax. Links to the employee payroll tax and income tax.

Minimum Wage & Payroll

Minimum Wage

The monthly minimum wage is 730,002 KHR for regular employees. For employees who are on probation, the minimum wage is 709,947 KHR.

Payroll Cycle

Laborers are paid at least every 16 days. Regular employee’s wages are paid monthly.


13th month salary

Not mandatory.

Employee stock option

There are no provisions for employee stock options in Cambodia. The employers may provide employee stock options in form of additional incentives and must be provided in writing in the form of an employment contract.

Working Hours & Statutory Leave

Maximum working hours

Standard working hour is 48 hours per week.

Overtime pay

Overtime is paid at the rate of 150% of the regular pay. For overtime between 10pm and 5am, the pay rate is 200%.

Public Holidays

The public holidays can be found here.

Annual Leave

Employees are entitled to 18 days of paid leave per year and are accrued at a rate of 1.5 days per month.

Sick Leave

Employees are entitled to up to 6 months of sick leave per year as long as they are able to provide a medical certificate.

Sick Pay Rate

Duration Pay Rate
1st Month100%
2nd to 3rd Month60%
4th to 6th Month0%

Parental Leave

Maternity Leave

Maternity leave is 90 days and the woman is entitled to 50% of their pay.

Paternity Leave

Not mandatory, and falls under special leave.

Special Leave

Employees are entitled to up to 7 days per event for matters that affect an immediate family member.

Offboarding & Termination

Termination Process

Fixed-term contracts

If both the employer and employee agree, a fixed-term contract can be terminated before the end date by signing an agreement in front of a labor inspector. If one of the parties does not agree, the employment contract cannot be terminated unless for reasons of gross misconduct or force majeure.

Indefinite employment contracts

Written notice must be given. If the employer initiates the dismissal, then a reason must be provided. The employer must also notify the Ministry of Labor.

Upon termination, the employee is entitled to request a certificate of employment stating the dates of employment and information about the position held. If the employer refuses to provide this, the employer must pay the employee for damages.

Notice Period

Indefinite Contracts

Year of EmploymentNotice Period
≤ 6 months7 days
6 months – 2 years15 days
2 – 5 years1 month
5 – 10 years2 months
> 10 years3 months

Fixed Term Contracts

Year of EmploymentNotice Period
≤ 6 monthsNo Notice required
6 months – 1 year10 days
>1 years3 months

Severance Pay

If the employer fails to give written notice or does not follow the notice period, compensation must be given to the employee for the amount that the employee would have earned during the notice period.

Years of EmploymentSeverance Pay
6 month – 1 year7 days
> 1 year15 days wages for every year of employment (maximum 6 months)

Probation period

Not mandatory.


It is mandatory for employers to provide social health insurance (SHI) for formally employed workers. The system would include employment injury benefits and old-age and survivors' pensions. The monthly contributions amount to a minimum of US$ 1.60 by the employee to avail the benefits of social security. 

The contribution would ensure it covers the healthcare expenses and other costs relating to hospitalization. The scope of the healthcare provided by the employer covers the employer as well as the immediate dependants.

Further details about insurance in Cambodia can be found here.


The standard VAT rate in Cambodia is 10%

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